Segmentation, targeting, and positioning are terms that can be used interchangeably in developing marketing plans. are part of a firm's marketing strategy. should be done simultaneously so synergies can help streamline the effort. are part of the marketing plan but bear little direct relationship to the marketing mix. are optional elements of a marketing plan.

Segmentation, targeting, and positioning are part of a firm's marketing strategy. They are very important component of any firm's marketing strategy. Without these elements, it is impossible to build a brand. In segmentation, we divide the heterogeneous market into homogeneous parts/chunks/segments, these segments have the same characteristics in terms of demography, geography, behavior or psychography. After dividing the market into smaller parts firm decided which segment to enter, serve and target. After selecting a segment, firm offer its products and services and do positioning. Positioning means firm place their products and services in the minds of the consumers. Firms place their products in the minds of consumer that how they want them to see their products and services.